TMI Blog2020 (2) TMI 683X X X X Extracts X X X X X X X X Extracts X X X X ..... where Input Tax Credit as determined by the Assessing Officer for any registered dealer, for a year, exceeds the tax liability for that year, it may be adjusted and the excess Input Tax Credit may be adjusted against any arrears of tax or any other amount due from him. If there are no arrears under the Act, or after adjustment there is still an excess of Input Tax Credit, Assessing Authority shall serve Form P upon such dealer. Rule 11 of the aforesaid Rule contemplates the issue of reference of such amounts - excess Input Tax Credit is to be refunded back if after adjustment there is balance available. Therefore, it is evident that if the amount of credit can be refunded, they can also be adjusted towards pre-deposit of the tax liability ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3.It has been stated that as per the decision of this Court in Tvl. KSB Pumbs Ltd. Vs. Deputy Commissioner (CT), Fast Track Assessment Circle II, Coimbatore , (2014) 68 VST 244 (Mad), the petitioner was required to pre-deposit 25% of the amount only in cash and adjustment from the Input Tax Credit was not permissible for the aforesaid purpose. 4.The learned counsel for the petitioner submits that the decision of this court in Tvl. KSB Pumbs Ltd. Vs. Deputy Commissioner (CT), Fast Track Assessment Circle II, Coimbatore , (2014) 68 VST 244, cannot be cited to hold that the petitioner was not entitled to pre-deposit the amount out of Input Tax Credit lying unutilised for the purpose of Section 51 of the TNVAT Act, 2006 as in the fa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er to avail Input Tax Credit of the tax paid on the input purchased on payment of tax from a registered dealer within the State. As per section 19 (2) of the TNVAT Act, 2006, credit shall be allowed for the purpose specified therein:- Section 19 Input Tax Credit- (2) Input tax credit shall be allowed for the purchase of goods made within the State from a registered dealer and which are for the purpose of (i) re-sale by him within the State; or (ii) use as input in manufacturing or processing of goods in the State; or (iii) use as containers, labels and other materials for packing of goods in the State; or (iv) use as capital goods in the manufacture of taxable goods. (v) sale in the course of inter-Sta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntral Excise Act, 1944. In the context of the aforesaid provision which also contemplats pre-deposit of amount, the Jharkhand High Court, Allahabad High Court, Karnataka High Court and Gujarat High Court have taken a view that such pre-deposit can be allowed for the purpose of Section 35F of the Central Excise Act, 1944. 11.A Division Bench of Jharkhand High Court in case of Akshay Steel Works Pvt. Ltd. Vs. Union of India , 2014 (304) ELT 518 and a Single Judge of Allahabad High Court in case of India Casting Company Vs. CEGAT, New Delhi, 1998 (104) ELT 17 and a decision of the Karnataka High Court in Union of India Vs. Vikrant Tyres Ltd., 1999 (35) RLT 427 (Kar) have recognised pre-deposit through adjustment in Modvat/Cenvat Cred ..... X X X X Extracts X X X X X X X X Extracts X X X X
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